Sherie Griffiths

April 29, 2010

SHHH! Mic’s Have Ears!

There was a serious issue behind yesterday’s news about Gordon Brown’s gaff, but I have a confession: my first response was to laugh!  I’ll tell you why in a minute. 

First, in case  you missed the Prime Minister’s unscheduled Party Election broadcast (if so, where have you been? – it’s been everywhere!), it came out of one of those chance encounters with voters of which all three party leaders seemed to have had so many ‘the other day’, before the first TV debate.  This time, Mr Brown had an apparently friendly chat with a lady who described herself as a lifelong Labour supporter.  When she challenged him on issues ranging from pensions to the national debt, he seemed to do his utmost to answer her questions and they seemed to part on quite amicable terms. 

Once back in his car, though, Gordon expressed his true feelings.  He growled that he “should never have been put with that woman” and called her a ‘bigot’ – because of her comments on immigration.  The trouble was that he’d forgotten he was still wearing a radio mic, which relayed everything he said straight to the three main broadcasters (Sky, ITV and the BBC) and so to the lady herself. 

Of course the Prime Minister immediately apologised – ‘profusely’, as the Chancellor, Alastair Darling, described it.  Perhaps not too surprisingly, the target of his spleen wasn’t impressed.  For what it’s worth, I think his apologies were genuine.  I’m sure he was truly sorry – for being overheard.

The coverage immediately after the event implied that we should be shocked that a politician could show one face in public and another in private – and maybe we should, but I’m not.  Call me cynical, but I accept that politics inevitably involves saying the right things at the right time – like marketing.  After all, that’s what electioneering is, isn’t it?  Each party is currently marketing its socks off, trying to win you and me as new or repeat customers. 

In case you’re wondering, when I say marketing is about saying the right things at the right time, I’m talking about finding out what the customer wants and finding a way to supply that want.  I’m certainly not advocating telling them what you think they want to hear, then going on your own sweet way.  Playing that game is bound to land you in the brown stuff eventually, isn’t it?  Marketing should never be about saying one thing in public and believing another in private – and if you’re in the marketing frontline (as the party leaders are)  but can’t deal with customer feedback, you’re in trouble.  

What did shock me when I first heard this story was that someone who has presumably had considerable media training – and experience – over the years, should make a mistake like this.  Then I thought again, remembered Tony Blackburn and the ‘Sky Channel incident’ – and burst out laughing!

In 1985, TB was part of the new team presenting music programmes on the still very new Sky Channel.  In March of that year, a story appeared in the paper about an unfortunate incident involving Tony, a radio mic and a ‘comfort break’.  Apparently, during the ads in the middle of a live show, he headed for the little boys’ room, did what little boys must do, washed his hands, came back to the studio, whistling all the way – and Europe heard it all, thanks to the radio mic on his lapel, which was still live.  OOOOOPS!

I guess if a seasoned broadcaster like Tony Blackburn can forget he’s wired for sound, Gordon Brown can be forgiven for doing the same.

Less excusable by his party colleagues, I suspect, is what this implies about their leader’s trustworthiness in the eyes of voters.  The last thing any of the participants in this election need right now is such stark evidence that ‘politicians say one thing and mean another’. 

The Labour Party will defend Gordon to the hilt in public, naturally, but I wonder what they’re saying in private … wouldn’t you like to be a mic on that walll …?

March 2, 2010

Taxpayers targeted in Retrospective Tax Trawls

From: Branston Adams (Chartered & Certified Accountants) – http://www.branstonadams.co.uk

Two recent landmark court rulings could lead to some individuals facing significant retrospective tax bills, as outlined below.

UK Citizens living abroad as Tax Exiles

Thousands of UK citizens living abroad as tax exiles could find themselves facing a retrospective tax bill stretching back as far as the previous six years, following
a recent Court of Appeal ruling.

The case involved businessman Robert Gaines-Cooper, who has lived in the Seychelles since 1976. Despite the fact that he had adhered to previous HM Revenue & Customs (HMRC) guidance by spending fewer than 91 days in the UK on average each year, the judges ruled he had nevertheless maintained ties with the country.
The Appeal Court said that the 91-day rule did not actually establish non-residency, and ruled that the UK had remained the ‘centre of gravity’ of the defendant’s life
and interests.

The ruling means that thousands of UK tax exiles could have their lifestyle scrutinised by the Revenue, with factors such as the number and length of visits to the UK, any economic and business ties, and ongoing connections such as membership of UK banks or sporting clubs, being taken into consideration.

Contractors using Offshore Tax Schemes

Meanwhile, contractors who have used or are continuing to use offshore tax schemes could be the target of a new clampdown by the tax authorities.
The warning follows a ruling by the Royal Court of Justice, which recently dismissed an application for a judicial review in the case of a self-employed information technology contractor who sought to challenge a £100,000 backdated tax demand from HMRC. The judge ruled that the backdating of the demand did not breach human rights law. The Professional Contractors Group has warned that HMRC may now retrospectively apply the tax legislation as far back as 1987, when the relevant legislation was first introduced. Those targeted could have to pay both the fines and the backdated taxes.

It is thought there may be 2,500 taxpayers exploiting such arrangements, with around £100 million of income tax at stake. We can advise on all your tax planning needs – contact us today for a tax planning review.

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